At 11:11 20/11/2003 -0500, jerry wrote:
>Mike L asked:
>
> > Remember, though, it is the given real wage that I am questioning, though.
> > My repeated question is-- what are the real conditions that would generate
> > this if productivity is increasing?
>
>Assuming that commodities are sold at their value and assuming
>competitive conditions, productivity increases should result in declining
>commodity prices, including declining prices for means of consumption
>for workers. A given real wage, under these circumstances, requires
>*declining money wages*.
OK, what produces those declining money wages? Assume that those
productivity increases drop from the sky (ie., without any effect of an
increase in the technical composition of capital).
in solidarity,
michael
---------------------
Michael A. Lebowitz
Professor Emeritus
Economics Department
Simon Fraser University
Burnaby, B.C., Canada V5A 1S6
Office Fax: (604) 291-5944
Home: Phone (604) 689-9510